The uncertain future of Mercosur

Mercosur (Mercado Común del Sur) is a Regional Trade Agreement (RTA) between Brazil, Argentina, Uruguay and Paraguay. Venezuela just signed its membership agreement on June 17th 2006 and became a full member on July 4th of the same year. Mercosur was founded in 1991 by the Treaty of Asunción which was later amended and updated by the 1994 Treaty of Ouro Preto (black gold). Its purpose is to promote free trade and the fluid movement of goods, peoples, and currency. Chile, Colombia and Perú currently have associate member status and Mexico is in the process of becoming an associate member. Bolivia is soon to join and Ecuador, under newly elected Rafael Correa, is now a candidate.

NEWS:

• Nicaragua says Caribbean islands illegally sold.  Taiwan leader to visit Nicaragua and the US.  Nicaragua’s Ortega seeks new IMF program.
• Venezuela Forming Unified Party.  Hugo Chavez replaces Vice-Minister for former chief of the electoral council.  Venezuela to buy 4 oil tankers from Iran.  Chavez won’t renew opposition’s TV License.  Venezuela annual inflation rises in 2006 because of Chavez spending.  Russia delivers five military choppers to Venezuela.  Venezuela’s CITGO plans no new refinery sales in 2007.  Venezuela Plugs in Nicaragua.  Oil pushes Venezuela growth again.
• Colombian Official Denounces Murder Plot.  Rebels kill 5 in attacks in rural Colombia.  Colombia and Ecuador Crisis escalates.
• Ecuador’s economy minister fired.
• Peruvian president pushes for free trade with U.S. senator delegation.  García outraged at IAC on Human Rights decision.  Defense minister: Peru committed to crush illegal coca production.  Peru economy grew 7.5% in 2006.  Evo Morales to Tour Latin America.
• Mexico troops sent to border city.
• U.S. Enemies Align With Cuba to Claim Gulf Oil.  Castro ‘admitted to Spanish hospital’.
• Brazil may send troops to quell Rio gangs.  Lula vows to spur Brazil’s economy.  Brazil still the slowest growing emerging economy.  Petrobras Signs $645 Million Rig Contract for Offshore Brazil.  Brazil’s Real Pares Losses after Treasury Secretary Steps Down.
• Uruguay’s recovery "has exceeded all expectations"
• Argentina announces 2.3-billion-dollar fuel refinery project.  Argentina’s Banks to re-pay depositors.

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